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Watch out for high early termination fees on smart phones

The contact on my Verizon wireless cell phone has expired, and Verizon would really like me to sign a new contract. It’s flooding my mailbox with offers of free phones, if I sign on the dotted line.

What’s new since I got my first cell phone is Verizon’s doubling of its contract early termination fees for certain high-end phones, and Google’s new Nexus One coming with hefty fees, too.

The Federal Communications Commission has written to the four major wireless carriers and Google asking them to explain how their early termination fee plan works, how much it costs customers, whether alternatives are available, and if customers would incur any additional or “hidden” fees when purchasing a new phone or signing up for a contract.

Consumers are upset about early termination fees. Critics say Google, like other wireless carriers, may be using early termination fees mainly as a markup of pure profit, reports ConsumerAffairs.com.

Note: This is a seattlepi.com reader blog. It is not written or edited by the P-I. The authors are solely responsible for content. E-mail us at newmedia@seattlepi.com if you consider a post inappropriate.